Overview
- Microsoft told CNBC the reported 30% profit-margin target for Xbox is incorrect, while affirming it aims for ambitious results.
- Bloomberg previously reported that CFO Amy Hood led a 2023 push to raise Xbox margins to 30%, up from 12% in 2022.
- Analysts cited in that reporting placed typical video game margins at roughly 17% to 22%, with Xbox around 10% to 20% over recent years.
- Coverage has linked console and Game Pass price increases, broader releases on rival platforms, layoffs, canceled games, and studio closures to profitability efforts.
- Executives defended the restructuring, with Phil Spencer invoking capitalism and Matt Booty emphasizing a healthy business, and reports indicated an $80 new-game pricing plan was scrapped.